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Central NY | I raise sheep, corn and beans in the midst of small <80 and large > 500 cow dairies. Corn might be high now but it hasn't always been that way. When milk was low a few years ago (and corn was under $3) the state of NY gave all the dairy farmers a hand out. Couldn't buy anything at an auction that spring because the dairies had money.
When the price of corn in 2005 or 2006 was real low just after silage was cut the payment from the government was very high for a short period. To get the payment you had to have your corn or silage equivalent harvested. Only the dairies had finished harvest. Some of my neighbors laughed about the windfall they received that fall. By the time combining was done the government payment was much lower since the price of corn had rebounded so the grain farmers got very little.
We scrutinize every expenditure every day. Generally speaking we pay less for our inputs - seed, fertilizer, parts, chemicals than those around us because we are always looking at our costs. Gave the neighbor (500 cow dairy) the name of the guy that roasted our soybeans one fall since he was much less than the guy the neighbor used. He stayed with the same guy since the savings was only a few thousand dollars. Give me an expense category and I'll cite an example where the local dairies pay more.
Had three small dairies inquire about buying high moisture corn this fall - each wanted about 3000 bushels. We asked how they would pay for it. One had the money, another was going to borrow the money from the bank and the third wanted to make payments to us. Sold 1000 bushels to a small dairy @$8.55 per bu. He wrote a check. Plenty of large and small dairies here buying corn.
The local equipment dealers are all moving lots of new equipment right now - dairies are buying. Went to look at a used flex head for the combine the other day. They drove a combine off the truck first that a dairy farmer bought - and it was way over priced. Neighbor (dairy) stopped by in his new truck tonight. Apparently it's cheaper to buy a new one than pay the $1200 repair on the old one.
One of the worst farmer in the area is putting up a manure lagoon, parlor and barn right now. Chicken farmer had his farm foreclosed on this spring. Dairy farmer bought it at the bankruptcy auction. Drove home from the auction in his Caddy. Lots of borrowed money and banks willing to lend.
It might be tougher with high feed prices right now but plenty of people are coping with the challenges. It all comes down to managing your operation.
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- Anyhow, you guys missed my whole point - cousinit : 9/11/2012 00:02
- RE: Anyhow, you guys missed my whole point - Hurricane : 9/11/2012 00:12
- If more dough made by selling the feed and cows - Markwright : 9/11/2012 00:52
- RE: Anyhow, you guys missed my whole point - Ben D, N CA : 9/11/2012 01:47
- RE: Anyhow, you guys missed my whole point - garvo : 9/11/2012 06:26
- RE: Anyhow, you guys missed my whole point - Sheep Herder : 9/11/2012 08:00
- RE: Anyhow, is this coucinit......... - tj_farms : 9/11/2012 08:02
- Re: Anyhow, you guys missed my whole point - sammyd : 9/11/2012 08:07
- RE: Anyhow, you guys missed my whole point - proud2Bafarmer : 9/11/2012 08:14
- RE: Anyhow, you guys missed my whole point - John Central NY : 9/11/2012 10:15
- RE: Anyhow, you guys missed my whole point - dieseldoc : 9/11/2012 11:19
- Re: Anyhow, you guys missed my whole point - woodchuck : 9/11/2012 16:14
- RE: Anyhow, you guys missed my whole point - ramlamb : 9/11/2012 23:09
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Anyhow, you guys missed my whole point
